Kroger Co. and Albertsons Companies have modified their definitive agreement with C&S Wholesale Grocers, LLC regarding the sale of assets in anticipation of their proposed merger. This amended agreement alters and expands upon the original divestiture package, which was announced on September 8, 2023. This update is a direct response to issues raised by federal and state antitrust regulators. Both Kroger and Albertsons express their continuous commitment to defend the merger in court.
The revised divestiture package augments the total store number by 166, bringing the total to 579 stores to be sold to and run by C&S Wholesale Grocers, under the current operating parameters. According to the revised agreement, Kroger will sell the Haggen brand to C&S. Furthermore, C&S will obtain licensing rights for the Albertsons brand in California and Wyoming, and the Safeway brand in Arizona and Colorado. In these states, Kroger will rebrand the retained Albertsons and Safeway stores, while keeping the Albertsons and Safeway brands in the remaining states.
Kroger's CEO, Rodney McMullen, emphasized, "Significantly, the updated divestiture plan ensures no stores will close as a result of the merger and all frontline associates will remain employed. Existing collective bargaining agreements will continue unaffected and associates will continue to receive their industry-leading health care and pension benefits alongside bargained-for wages."
